Some estimate that Facebook’s revenues in 2007 at only $100m, mostly from selling ad space, with tiny profits. Nevertheless, the internet’s giants—Yahoo!, Microsoft and Google—are offering to buy Facebook or a stake in it for a price that would value the firm at many billions. At a Facebook conference on “Graphing social patterns,” panellists said the firm may be worth $100 billion and that it is the new Google.
So what makes Facebook so additive to new and existing users? I believe the secret lies in Facebook’s “mini-feed”, an event stream on user pages that keeps users abreast of what their friends are doing—uploading photos, adding a widget and so on.
For many users, this is addictive and is the main reason they log on so often. This “data exhaust” that gives Facebook users a vision nto the lives of people they know only casually.